The Asian Development is working with Myanmar to improve a road along the Greater Mekong Subregion East-West Economic Corridor, linking the country to Thailand. The project is upgrading a more than 66-kilometer section of the road between Eindu and Kawkareik in Kayin State, to provide year round access with design features that cut travel time, increase safety and boost climate resiliency.

The Asian Development Bank (ADB), at the request of the Government of the Republic of the Union of Myanmar, provided financial assistance for the improvement of 66.4 kilometer (km) of road between Eindu and Kawkareik, in Kayin State. The project road will be improved to the Greater Mekong Subregion (GMS) road network standard of two lanes with appropriate width paved shoulders, suitable for all standard highway traffic. The section will require complete reconstruction, with some short sections of realignment for improved vehicle operating speed and road safety. The project also includes design features for climate resilience in this flood-prone area, including raising the road to a level that takes into account potentially higher future flood levels to provide year-round access.

As a project due diligence for ADB financial support to the project, a technical assistance grant was provided to assist the government in the preparation of the project, including engineering, economic, social and environmental safeguards and financing requirements of the project.

Project Rationale and Linkage to Country/Regional Strategy

The project is located in Myanmar''s Kayin State, which borders Thailand. The state is isolated and has been affected by sectarian conflict since 1949. As a consequence, poverty levels are high, and social and economic infrastructure is rudimentary and in poor condition where it exists. Despite these factors, the state is traversed by Myanmar's principal road link to Thailand, along which about 30% of the country's land-based trade passes. This road link is part of the GMS EWEC, which is intended to connect Da Nang in Viet Nam with Mawlamyine and Yangon in Myanmar, through the Lao People's Democratic Republic and Thailand. The GMS EWEC road sections have been completed in the Lao People's Democratic Republic, Thailand, and Viet Nam; the Myanmar sections need to be completed and improved. The project is aligned with the development agenda of ADB's Midterm Review of Strategy 2020, which supports inclusive economic growth and regional cooperation and integration. Myanmar suffers from a lack of good quality transport connections nationally and with neighboring countries, which has constrained its economic growth and integration within Asia. After five decades of isolation, it is essential that regional connectivity is improved to stimulate and sustain economic development, and to normalize cross-border flow of goods and people. Improvement of the GMS EWEC within Myanmar will dramatically improve connectivity, reduce travel times, and support economic development within the corridor and beyond, lifting many in this poor state of Myanmar out of poverty. The project will (i) improve road access to and within Kayin State; (ii) facilitate trade between Myanmar and Thailand, and beyond to the wider GMS region; and (iii) support the peace process and demonstrate the government's commitment to improving the well-being of people in areas that have long been affected by conflict. The GMS EWEC within Myanmar is a priority of the government, as highlighted in the national transport master plan.

As of December 2017, pre-construction activities has commenced. Updating of the Resettlement and Ethnic Groups Development Plan for realigned sections were finalized. Consultations with affected persons are ongoing. Construction on non-realigned sections is expected within the dry season from November 2017 to May 2018.

Implementation Progress

Description of Project Outputs

66.4km of road between Eindu and Kawkareik improved

Status of Implementation Progress (Outputs, Activities, and Issues)

Status as of December 2017, pre-construction activities has commenced in Q1 2017. Updating of the Resettlement and Ethnic Groups Development Plan for realigned sections were finalized. Consultations with affected persons are ongoing. Construction on non-realigned sections is expected within the dry season from November 2017 to May 2018.

Contracts were signed with China Road and Bridge Corporation on 25 October 2016. Pre-construction activities has commenced in Q1 2017. Finalization of resettlement plan still ongoing.

Geographical Location

Eindu, Kawkareik District

Safeguard Categories

Environment

B

Involuntary Resettlement

B

Indigenous Peoples

B

Summary of Environmental and Social Aspects

Environmental Aspects

The Project is not anticipated to cause significant adverse environmental impacts and has been classified as environment category B in accordance with ADB's Safeguard Policy Statement (SPS). The Government prepared an initial environmental examination (IEE) with an environmental management plan (EMP) consistent with the ADB SPS 2009 requirements. It was publicly disclosed in May 2015.

Involuntary Resettlement

The Project has been classified as category B in accordance with ADB's SPS. The Combined Resettlement Plan and Indigenous Peoples Plans was prepared by the Government and was publicly disclosed in June 2015. A revised Resettlement Plan has been prepared and submitted to ADB in March. As of April 2017 the revised resettlement plan ins under review.

Indigenous Peoples

The communities in the project areas comprise various ethnic groups. Impacts on these groups include involuntary resettlement impacts, risks of HIV and human trafficking along with the need to ensure meaningful consultation throughout project preparation and implementation. The Eindu Kawkeriek road improvement has been classified as B for Indigenous Peoples Safeguards in accordance with ADBs SPS.

During the preparation of the project, and as part of the project communication plan, a series of public consultations were conducted in April and March 2014, involving affected people (AP) consisting of village leaders/officials and residents. A total of 45 village leaders and 237 residents were consulted. The consultations showed strong support for the project road and those residents along the project road. Further consultation exercises are being held with a broad range of stakeholders, including a workshop in February 2015.

The project documentation includes a communication plan for ongoing dialogue with stakeholder during project implementation.

Stakeholder Communication, Participation, and Consultation

During Project Design

ADB conducted loan fact finding in early February 2015 with the Ministry of Construction (MOC), the executing agency of the project.

During the project preparation due diligence stakeholder consultations were held in March and April 2014, with further meetings held in February 2015.

During the preparation of the IEE and RP documents, a series of public consultations were conducted in April and March 2014 involving affected people (AP) consisting of village leaders/officials and residents. A total of 45 village leaders and 237 residents were consulted. The consultations showed strong support for the project road and that residents along the project road do not consider themselves particularly affected by environmental issues. Regarding concerns about the project road, consultations showed the following consistent concerns: (i) traffic accidents related to increased road speed; and (ii) loss of land or property. The APs were asked to consider mitigation measures for these issues and these clearly came across as (i) improving traffic rules awareness, road crossings and traffic safety signage; and (ii) ensure adequate compensation measures for loss of land.

During Project Implementation

The Project was approved by the Board of ADB on 10 November 2015. The communication plan for the project will ensure suitable dialogue is maintained with stakeholders throughout the project implementation.

All necessary consultation and approvals will be undertaken for the project implementation in line with Government requirements and ADB's SPS.

In May 2015, and on 22-27 May 2016, ADB and MOC conducted key Stakeholder meetings along the road alignment, up to the village level to update them about the Project's progress and implementation plan. On 5-6 October 2016, grievance redress mechanism orientation workshops were conducted in Kawkareik and Hpa-An. a follow-up workshop on GRM process was completed in March 2017.

Business Opportunities

Consulting Services

The civil works contracts will be supervised by a contract supervision consultant (CSC), who will be the Engineer for the contracts as defined in the contract documentation. CSC services will be provided through an association of international and national consultants (105 PM international, and 792 PM national). The consultants will be selected in accordance with ADBs Guidelines on the Use of Consultants (2013, as mended from time to time), using the Quality-and cost-based selection (QCBS) method.

Procurement

The project's road rehabilitation work will be implemented through two civil works contracts, one covering the section of the project road from Eindu to Gyaing Bridge (km 0.00 to km 40.4), and the other from Gyaing Bridge to Kawkareik (km 42.2 to km. 66.5). All civil works contracts will be procured following procedures ser out in ADB's Procurement Guidelines (2013, as mended from time-to-time).

Advance action has been requested by the Government and agreed by ADB. The government has been advised that approval of advance action for procurement and consultant recruitment does not commit ADB to finance the project.

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

ADB has approved a $100 million loan to improve a 66.4 kilometer section of road connecting the towns of Eindu and Kawkareik in Kayin state, the missing link of the Greater Mekong Subregion (GMS) East-West Corridor.

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